seattle prattle wrote:
You know what sucks? Capital gains tax. Now that I'm out of the market and all cash, it just occurred to me that I'm gonna lose like a 1/4 of my investment to Uncle Sam which means I'm gonna be slightly below my target. Good thing I didn't spend it all yet.
Tell me about it!
I've owned TNA in cash accounts since it first came onto the market- many years ago - and ran up something like 300% and 400% gains. And yes, i sold most of it on the way down along with the triple everaged S&P 500 ETF (SPXL). My cap. gains taxes this year will be through the roof. I am going to use the occassion to unload some i am down on like some chip stocks that are underwater, but there's no way to make up all that gain.
Just the cost of doing business, i suppose.
If i am forced to sell FANG stocks, that's going to be a field day for Uncle Sam.
Like another poster said, 25% sounds a little high and in my case it will be long term cap gains, so i guess-timate maybe 18% or so.
There's other considerations to factor unique to triple leveraged ETFs that i will spare you, like high fees, but i'll spare you.
It's always something, isn't it?!
Ha! I actually held TZA for like two months and that was fun. But yeah, it's always something. I thought if you hold less than a year then it just counts as regular income? I know you can write off or deduct losses which I looked into until I gained it all back
A year holding period to qualify for long term cap. gains sounds about right. I generally don't sweat it just becuase i actively trade in my IRA accounts so i don't get hit with short term cap. gains.
Turnover in the cash accounts, which i do have to pay taxes on, is just about nil except this year.
The only time i tried TZA, i lost a little. Shorting is not my strongpoint.